Increased Fuel Costs Drive SaviCorp DynoValve Sales

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Jan 11, 2011, 09:30 ET

SANTA ANA, Calif., Jan. 11, 2011 /PRNewswire/ -- In December 2010, gasoline prices hit an average of $3 per gallon and are expected to reach $4 or more per gallon. Crude oil is the biggest component, and accounts for about 71% of the price of gasoline as of November 2010, based on an International Energy Agency (IEA) estimate. Roughly, for every one dollar increase in the per barrel (42 gallons) price of oil, gasoline prices rise 2.5 cents per gallon. So, a ten-dollar rise in crude price per barrel would add about 25 cents at the pump, not accounting for other components. Since the crude oil price is expected to go to over $100 per barrel, it is likely gasoline prices will increase to between $3.50 - $4.00 per gallon.

Currently, the international trend is that "Oil Consumption" is steadily increasing, especially in China and other emerging countries.

Savi estimates the DynoValve has the potential of saving gasoline automobiles, at least 3 years old, anywhere from 5% to 15% on fuel costs. If we use a factor of saving 5% on fuel cost for a market target of 2% of the amount of existing US vehicles older than 10 years, the Gross Income to Savi would be $361,760,000 or more depending on sales and if state or federal legislation mandates use of these types of fuel saving and emission reduction products such as the DynoValve.

In March 2009, RL Polk released a study conducted in 2007 to 2008, which indicated that the median age of passenger cars in operation in the US increased to 9.4 years, and that the median age for light trucks increased from 7.1 years in 2007 to 7.5 years in 2008.

This estimate is based on the report prepared by the United States Department of Transportation's Federal Highway Administration as well as the National Automobile Dealers Association. According to the US Bureau of Transit Statistics for 2006 there are 250,844,644 registered passenger vehicles of these roughly 251 million vehicles, 135,399,945 were classified as automobiles, while 99,124,775 were classified as "Other 2 axle, 4 tire vehicles," presumably SUVs and pick-up trucks. They also determined that there were approximately 6,686,147 motorcycles in the US in 2006.

Our estimated national consumer fuel savings, if a DynoValve is installed on 2% of the US vehicles 10 years or older (1,033,600 vehicles), is as follows and based on a projected fuel savings of 5%: assuming a gas price of $3.50 per gallon @ a 5% saving or $0.18 per gallon; average miles per vehicle @ 21.5 mpg would yield an annual consumer estimated savings of $103,840,744.

SaviCorp CEO, Serge Monros, states, "Savi is working diligently to have manufacturing, marketing, sales, advertising and a Certification Program fully in place to ensure quality installations for national distributors ready to meet consumer demand for the DynoValve installations in 2011.

"In other news, all operations for our corporate headquarters, certification training center and Manufacturing have been consolidated along with a full service automotive technical and R&D facility for the installation of the DynoValves and are capable of handing any new projects. With all of this in place, our company can focus on testing and certifying the DynoValvePro for diesel engines to create another revenue stream for our company.

"I am also proud to announce the astounding public support and the fleets coming on board. 2011 is going to be a banner year for SaviCorp. Several large orders by national distributors and installation centers throughout the country are now making progress and the training of these personnel is the 1st priority. We are finalizing our service installation center and high tech training facility and will soon have DynoValve Certification Programs in full operation by this spring."

About SaviCorp

SaviCorp is the evolution of more than twenty years of automotive engine emissions testing, materials research and development. The Company was formed to create, support and license a patented supplementary vehicle Emissions Reduction Technology (ERT) to reduce emissions and improve efficiency. Using proprietary methods and processes, SaviCorp's DynoValve (http://www.dynovalve.com) protects the environment, lessens an engine's carbon offsets, increases gas mileage, and improves engine performance resulting in dramatic savings in both fuel and oil.

To list just a few of the highlights of this past year's achievements please read all of our corporate news accomplishments for 2010 in our news archives links located here -

SaviCorp is a publicly traded company (SVMI) - http://www.SaviCorp.com

Safe Harbor Statement

This release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We use words such as "anticipate,'' "believe,'' "expect,'' "future,'' "intend,'' "plan,'' and similar expressions to identify forward-looking statements. Forward-looking statements include, without limitation, our ability to increase income streams, to grow revenue and earnings, and to obtain other Joint Ventures. These statements are only predictions and are subject to certain risks, uncertainties and assumptions, which are identified and described in the Company's public filings with the Securities and Exchange Commission.